Credit Card Spending Sets New Record

          Because of its easiness to use, people are spending more with the credit cards instead of cash. The rate of credit card usage had been declining lately; however, according to the research, it has rapidly increased since late February which set the new record of 25.8 trillion won. It is a 25.5% compared to March of last year.

          One of the main reasons is that now people can pay the bills using the credit cards and still have all the benefits of its mileages and promotions as well. Although the card spending is more than ever, according to the article, Credit Finance Association states that it's hard to tell it's a sign that the economy is recovering because number of card users have grown, too.

          Actually, according to the article, “the consumer confidence index fell to its lowest level in 23 months in March as more consumers turned pessimistic about their living conditions this year due to growing costs, the National Statistical Office said Monday” (BusinessWeek).

          The concern about “credit crunch” like in the state is also growing as more people are using the credit cards; however, the Bank of Korea says that only a part of people have lend riskier mortgage. Also, banks in Korea now have strict regulations for lending money in order to keep the interest rates low.

          I also sometimes use credit card and enjoy all the benefits from it including promotion, discounts, easy balance transfer and so on. Using such conveniences help us to live easier and more comfortably. However, when it goes beyond the line, it always makes problems. Many experts elaborate that using credit card can be beneficial, but also risky at the same time. I think using it wisely and putting it under your control are the most important facts for using the credit cards.

Reference;
http://koreatimes.co.kr/www/news/biz/2008/04/123_22216.html

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